JP, that's what you've been waiting for and more to come. What a great day you had!
Actual longevity likely is far more than 25 years. The Suniva panels carry a 25 year warranty.
The 1% CD loses money every year due to inflation and taxes, has declining net present value, and there is no gain.
Year One for CD at 1%: $22,400 x .01 = $240. Total value = $22,640. Combined federal and state income taxes on $240 at assumed 25% rate = $60. Net total value = $22,580. Discount at assumed average 3.5% inflation rate = $22,580 x 0.965 = $21,789.70 net present value at end of Year One.
Year One for PV: $1,035 real value returned through payment of electric utility bill. Amount of money in a 1% CD that would pay $1,035 (ignore tax on the interest) = $103,500. I submit that the $22,400 PV system has a value much greater than the price I paid because it produces a much higher rate of return than a CD investment. But assuming that the PV system only added $22,400 to the value of my house, after inflation that would be worth $21,616 + $1,035 returned through payment of electric charges = $22,651 at the end of year one, $861 greater than the CD investment.
We agree far more than we where we have differences of opinion. My example was for Year One because that's where we are right now. In my prior thread Payback, I set forth the assumptions on which the 5% rate of return was based over the long term. Depreciation certainly is a factor. I did include a 0.5% derate per year. PV systems have been installed for far more than 25 years. Your guess is as good as mine on what a depreciation period should be. I won't live to see the first 25 years end. As to maintenance, it will be wait and see. After 1-1/2 years there has been none and no indication of when or what maintenance may be needed. The microinverters are warranted for 10 years, Wiring may be impacted over time, but all of the wiring is behind the panels, generally free from sun and most weather caused degradation. My racking is commercial grade, very heavy duty. If you have maintenance info on other high quality systems, I would be interested in seeing that.I don't feel like trolling your thread (again )....
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